THE PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT, 2006 
_______________ 

ARRANGEMENT OF SECTIONS 
_______________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent, commencement and application. 
2.  Definitions. 

CHAPTER II 

PETROLEUM AND NATURAL GAS REGULATORY BOARD 

3.  Establishment and incorporation of the Board. 
4.  Qualifications for appointment of Chairperson and other members. 
5.  Term of office, conditions of service, etc., of Chairperson and other members. 
6.  Powers of Chairperson. 
7.  Removal of Chairperson or any other member from office. 
8.  Meetings of the Board. 
9.  Vacancies, etc., not to invalidate proceedings of the Board. 
10.  Officers and other employees of the Board. 

CHAPTER III 

FUNCTIONS AND POWERS OF THE BOARD 

11.  Functions of the Board. 
12.  Powers regarding complaints and resolution of disputes by the Board. 
13.  Procedure of the Board. 

CHAPTER IV 

REGISTRATION AND AUTHORISATION 

14.  Register. 
15.  Registration of entities. 
16.  Authorisation. 
17.  Application for authorisation. 
18.  Publicity of applications. 
19.  Grant of authorisation. 
20.  Declaring, laying, building, etc., of common carrier or contract carrier and city or local natural 

gas distribution network. 

21.  Right of first use, etc. 
22.  Transportation tariff. 
23.  Suspension or cancellation of authorisation. 

24.  Board to settle disputes. 

CHAPTER V 

SETTLEMENT OF DISPUTES 

1 

 
 
 
 
 
 
SECTIONS 

25.  Filing of complaints. 
26.  Power to investigate. 
27.  Factors to be taken into account by the Board. 
28.  Civil penalty for contravention of directions given by the Board. 
29.  Orders passed by Board deemed to be decrees. 

CHAPTER VI 

APEALS TO APPELLATE TRIBUNAL 

30.  Appellate Tribunal. 
31.  Technical Member (Petroleum and Natural Gas). 
32.  Terms and conditions of service of Technical Member (Petroleum and Natural Gas). 
33.  Appeals to Appellate Tribunal. 
34.  Procedure and powers of the Appellate Tribunal. 
35.  Power of Appellate Tribunal to make rules. 
36.  Orders passed by Appellate Tribunal to be executable as a decree. 
37.  Appeal to Supreme Court. 

CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT 

38.  Grants by Central Government. 
39.  Fund. 
40.  Accounts and audit. 
41.  Annual report and its laying before Parliament. 

CHAPTER VIII 

POWER OF CENTRAL GOVERNMENT 

42.  Power of Central Government to issue directions. 
43.  Taking over control and management of facilities and business premises of any entity and retail 

outlets in public interest. 

CHAPTER IX 

OFFENCES AND PUNISHMENT 

44.  Punishment for contravention of directions of the Board. 
45.  Penalty for wilful failure to comply with orders of Appellate Tribunal. 
46.  Punishment for unauthorised activities. 
47.  Punishment for establishing or operating a liquefied natural gas terminal without registration. 
48.  Punishment for laying, building, operating or expanding a common carrier or contract carrier 

without authorisation. 

49.  Punishment for wilful damages to common carrier or contract carrier. 
50.  Offences by companies. 

51.  Maintenance of data bank and information. 

CHAPTER X 

MISCELLANEOUS 

2 

 
 
 
 
 
 
 
 
SECTIONS 

52.  Obligations of entities. 
53.  Furnishing of returns, etc., to Central Government. 
54.  Chairperson, members, etc., to be public servants. 
55.  Protection of action taken in good faith. 
56.  Civil courts not to have jurisdiction. 
57.  Cognizance of certain offences. 
58.  Delegation. 
59.  Power to remove difficulties. 
60.  Power of Central Government to make rules. 
61.  Power of Board to make regulations. 
62.  Rules and regulations to be laid before Parliament. 
63.  Transitional arrangements. 

3 

 
 
 
 
THE PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT, 2006 

ACT NO. 19 OF 2006 

[31st March, 2006.] 

An  Act  to  provide  for  the  establishment  of  Petroleum  and  Natural  Gas  Regulatory  Board  to 
regulate the refining, processing, storage, transportation, distribution, marketing and sale of 
petroleum, petroleum products and natural gas excluding production of crude oil and natural 
gas  so  as  to  protect  the  interests  of  consumers  and  entities  engaged  in  specified  activities 
relating  to  petroleum,  petroleum  products  and  natural  gas  and  to  ensure  uninterrupted  and 
adequate supply of petroleum, petroleum products and natural gas in all parts of the country 
and  to  promote  competitive  markets  and  for  matters  connected  therewith  or  incidental 
thereto. 

BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title, extent, commencement and application.—(1) This Act may be called the Petroleum 

and Natural Gas Regulatory Board Act, 2006. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference 
in any such provision to the commencement of this Act shall be construed as a reference to the coming 
into force of that provision. 

(4)  It  applies  to  refining,  processing,  storage,  transportation,  distribution,  marketing  and  sale  of 

petroleum, petroleum products and natural gas excluding production of crude oil and natural gas. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “affiliate code of conduct” means the code of conduct governing entities engaged in storage, 

transmission, distribution, marketing and sale of natural gas under sub-section (1) of section 21; 

(b) “Appellate Tribunal” means the Appellate Tribunal referred to in section 30; 

(c) “appointed  day”  means  the  date on  which  the  Board is  established  under  sub-section  (1)  of 

section 3; 

(d) “authorised entity” means an entity— 

(A) registered by the Board under section 15— 

(i) to market any notified petroleum, petroleum products or natural gas, or 

(ii) to establish and operate liquefied natural gas terminals, or 

(B) authorised by the Board under section 16— 

(i)   to lay, build, operate or expand a common carrier or contract carrier, or 

(ii) to lay, build, operate or expand a city or local natural gas distribution network; 

1.  1st  October,  2007  (except  s.  16),  vide  notification  No.  G.S.R.  637(E)  dated  1st  October,  2007,  see  Gazette  of  India, 

Extraordinary, Part II, sec. 3(ii).  

   15th July, 2010,--Section 16, vide notification No. G.S.R. 596(E), dated 12th July, 2010,  see Gazette of India, Extraordinary, 

Part II, sec. 3(ii).  

4 

 
 
                                                 
(e)  “auto liquefied  petroleum  gas”  means  a  mixture of  certain  light  hydrocarbons  derived  from 
petroleum,  which are  gaseous  at normal  ambient temperature  and atmospheric pressure  but  may  be 
condensed to the liquid state at normal ambient temperature by the application of moderate pressure, 
and which conform to such specifications for use as fuel in vehicles, as the Central Government may, 
in consultation with the Bureau of Indian Standards, notify from time to time; 

(f)  „„Board”  means  the  Petroleum  and  Natural  Gas  Regulatory  Board  established  under  sub-

section (1) of section 3; 

(g) “Bureau of Indian Standards” means the Bureau of Indian Standards established under section 

3 of the Bureau of Indian Standards Act, 1986 (63 of 1986); 

(h)  “Chairperson”  means  the  Chairperson  of  the  Board  appointed  under  sub-section  (1)  of   

section 4; 

(i)  “city  or  local  natural  gas  distribution  network”  means  an  inter-connected  network  of  gas 
pipelines  and  the  associated  equipment  used  for  transporting  natural  gas  from  a  bulk  supply  high 
pressure transmission main to the medium pressure distribution grid and subsequently to the service 
pipes supplying natural gas to domestic, industrial or commercial premises and CNG stations situated 
in a specified geographical area. 

Explanation.—For  the  purposes  of  this  clause,  the  expressions  “high  pressure”  and  “medium 
pressure”  shall  mean  such  pressure  as  the  Central  Government  may,  by  notification,  specify  to  be 
high pressure or, as the case may be, medium pressure; 

(j) “common  carrier”  means  such  pipelines  for  transportation  of  petroleum,  petroleum  products 
and natural gas by more than one entity as the Board may declare or authorise from time to time on a 
non-discriminatory  open  access  basis  under  sub-section  (3)  of  section  20,  but  does  not  include 
pipelines laid to supply— 

(i) petroleum products or natural gas to a specific consumer; or 

(ii) crude oil; 

Explanation.—For  the  purposes  of  this  clause,  a  contract  carrier  shall  be  treated  as  a  common 

carrier, if— 

(i)  such  contract  carrier  has  surplus  capacity  over  and  above  the  firm  contracts  entered      

into; or 

(ii) the firm contract period has expired. 

(k) “CNG station” means filling station where one or more dispensing units are provided for sale 

of compressed natural gas; 

(l)  “compressed  natural  gas  or  CNG”  means  natural  gas  used  as  fuel  for  vehicles,  typically 

compressed to the pressure ranging from 200 to 250 bars in the gaseous state; 

(m) “contract carrier” means such pipelines for transportation of petroleum, petroleum products 
and  natural  gas  by  more  than  one  entity  pursuant  to  firm  contracts for  at  least  one  year  as  may  be 
declared or authorised by the Board from time to time under sub-section (3) of section 20; 

(n)  “dealer”  means  a  person,  association  of  persons, firm,  company  or  co-operative  society,  by 
whatsoever name called or referred to, and appointed by an oil company to purchase, receive, store 
and sell motor spirit, high speed diesel, superior kerosene oil, auto liquefied petroleum gas or natural 
gas; 

(o) “distributor” means a person, association of persons, firm, company or co-operative society, 
by whatsoever name called or referred to, and appointed by an oil company to purchase, receive, store 
and sell to consumers liquefied petroleum gas in cylinders; 

(p)  “entity”  means  a  person,  association  of  persons,  firm,  company  or  co-operative  society,  by 
whatsoever name called or referred to, other than a dealer or distributor, and engaged or intending to 
be engaged in refining, processing, storage, transportation, distribution, marketing, import and export 

5 

 
 
of petroleum, petroleum products and natural gas including laying of pipelines for transportation of 
petroleum,  petroleum  products  and  natural  gas,  or  laying,  building,  operating  or  expanding  city  or 
local natural gas distribution network or establishing and operating a liquefied natural gas terminal; 

(q) “exchange of products” shall mean giving and receiving of a petroleum product in accordance 

with an agreement entered into by the concerned entities; 

(r)  “high  speed  diesel”  means  any  hydrocarbon  oil  (excluding  mineral  colza  oil  and  turpentine 
substitute), which conforms to such specifications for use as fuel in compression ignition engines, as 
the Central Government may, in consultation with the Bureau of Indian Standards, notify from time to 
time; 

(s) “kerosene or superior kerosene oil” means a middle distillate mixture of hydrocarbons which 
conforms to such specifications, as the Central Government may, in consultation with the Bureau of 
Indian Standards, notify from time to time; 

(t) “liquefied natural gas terminal” means the facilities and infrastructure required to— 

(i) receive liquefied natural gas; 

(ii) store liquefied natural gas; 

(iii) enable regasification of liquefied natural gas; and 

(iv) transport regasified liquefied natural gas till the outside boundaries of the facility; 

(u)  “liquefied  petroleum  gas”  means  a  mixture  of  light  hydrocarbons  containing  propane, 
isobutene,  normal  butane,  butylenes,  or  such  other  substance  which  is  gaseous  at  normal  ambient 
temperature  and  atmospheric  pressure  but  may  be  condensed  to  liquid  state  at  normal  ambient 
temperature  by  the  application  of  pressure  and  conforms  to  such  specifications,  as  the  Central 
Government may, in consultation with the Bureau of Indian Standards, notify from time to time; 

(v)  “local  distribution  entity”  means  an  entity  authorised  by  the  Board  under  section  20  to  lay, 

build, operate or expand a city or local natural gas distribution network; 

(w) “marketing service obligations” means obligations— 

(i) to set up marketing infrastructure and retail outlets in remote areas in respect of notified 

petroleum and petroleum products; 

(ii) to maintain minimum stock of notified petroleum and petroleum products; 

(iii) of a local distribution entity to supply natural gas to consumers; and 

(iv) such other obligations as may be specified by regulations; 

(x) “maximum retail price” means the maximum price fixed by an entity at which the petroleum, 
petroleum products and natural gas may be sold to the retail consumers and includes all taxes, cess 
and levies, local or otherwise and freight or commission payable to the dealers; 

(y)  “member”  means  a  member  of  the  Board  appointed  under  sub-section  (1)  of  section  4  and 

includes the Member (Legal) and the Chairperson; 

(z) “motor spirit” means any hydrocarbon oil (excluding crude mineral oil) used as fuel in spark 
ignition  engines  which  conforms  to  such  specifications,  as  the  Central  Government  may,  in 
consultation with the Bureau of Indian Standards, notify from time to time; 

(za) “natural gas” means gas obtained from bore-holes and consisting primarily of hydrocarbons 

and includes— 

(i) gas in liquid state, namely, liquefied natural gas and regasified liquefied natural gas, 

(ii) compressed natural gas, 

(iii) gas imported through transnational pipelines, including CNG or liquefied natural gas, 

(iv) gas recovered from gas hydrates as natural gas, 

6 

 
 
(v) methane obtained from coal seams, namely, coal bed methane, 

but does not include helium occurring in association with such hydrocarbons; 

(zb)  “notification”  means  a  notification  published  in  the  Official  Gazette  and  the  expression 

“notified” with its cognate meanings and grammatical variations, shall be construed accordingly; 

(zc) “notified petroleum, petroleum products and natural gas” means such petroleum, petroleum 
products  and  natural  gas  as  the  Central  Government  may  notify  from  time  to  time,  after  being 
satisfied that it is necessary or expedient so to do for maintaining or increasing their supplies or for 
securing their equitable distribution or ensuring adequate availability; 

(zd) “oil company” means a company registered under the Companies Act, 1956 (1 of 1956) and 
includes  an  association  of  persons,  society  or  firm,  by  whatsoever  name  called  or  referred  to,  for 
carrying out an activity relating to petroleum, petroleum products and natural gas; 

(ze) “petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable 
mixture (liquid, viscous or solid) containing any liquid hydrocarbon, including crude oil and liquefied 
petroleum  gas,  and  the  expression  „petroleum  product‟  shall  mean  any  product  manufactured  from 
petroleum; 

(zf)  “pipeline  access  code”  means  the  code  to  establish  a  framework  for  third  party  access  to 

pipelines under sub-clause (i) of clause (e) of section 11; 

(zg) “prescribed” means prescribed by rules made by the Central Government  under this Act; 

(zh) “regulations” means regulations made by the Board under this Act; 

(zi)  “restrictive  trade  practice”  means  a  trade  practice  which  has,  or  may  have,  the  effect  of 

preventing, distorting or restricting competition in any manner and in particular,— 

(i)  which tends to obstruct the flow of capital or resources into the stream of  production, or 

(ii)  which tends to bring about manipulation of prices, or conditions of delivery or to  affect 
the  flow  of  supplies  in  the  market  relating  to  petroleum,  petroleum  products  or  natural  gas  or 
services in such manner as to impose on the consumers unjustified costs or restrictions; 

(zj) “retail outlet” means filling station where one or more dispensing pumps have been provided 
for sale of motor spirit, high speed diesel, auto-liquefied petroleum  gas or natural gas and includes 
distributorship for liquefied petroleum gas or dealership for superior kerosene oil or CNG stations; 

(zk)  “retail  service  obligations”  means  obligations  of  dealers  and  distributors  for  maintaining 
supplies to consumers throughout the specified working hours and of specified quality, quantity and 
display of maximum retail price of notified petroleum, petroleum products and natural gas including 
CNG and such other obligations, as may be specified by regulations; 

(zl) “rules” means rules made by the Central Government under this Act; 

(zm) “Secretary” means the Secretary of the Board; 

(zn)  “transportation  rate”,  in  relation  to  common  carrier  or  contract  carrier  or  a  city  or  local 
natural  gas  distribution  network,  means  such  rate  for  moving  each  unit  of  petroleum,  petroleum 
products or natural gas as may be fixed by regulations. 

CHAPTER II 

PETROLEUM AND NATURAL GAS REGULATORY BOARD 

3. Establishment and incorporation of the Board.—(1)  With effect from such date as the Central 
Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board 
to be called the Petroleum and Natural Gas Regulatory Board. 

(2) The  Board  shall  be  a  body  corporate  by  the  name  aforesaid,  having  perpetual  succession  and  a 
common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, 
both movable and immovable, and to contract, and shall, by the said name, sue or be sued. 

7 

 
 
(3)  The  Board  shall  consist  of  a  Chairperson,  a  Member  (Legal)  and  three  other  members  to  be 

appointed by the Central Government. 

(4)  The  head  office  of  the  Board  shall  be  at  New  Delhi  and  regional  offices  at  such  places  as  the 

Board may deem necessary having regard to public interest and magnitude of the work. 

4.  Qualifications  for  appointment  of  Chairperson  and  other  members.—(1)  The  Central 
Government  shall  appoint  the  Chairperson  and  other  members  of  the  Board  from  amongst  persons  of 
eminence in the fields of petroleum and natural gas industry, management, finance, law, administration or 
consumer affairs: 

Provided that no person shall be appointed as Member (Legal) unless he— 

(a) is qualified to be a Judge of a High Court; or 

(b) has been a member of the Indian Legal Service and has held a post in Grade I of that Service 

for at least three years. 

(2) The Central Government shall, for the purposes of selecting the Chairperson and  other members 
of  the  Board  and  for  preparing  a  panel  of  persons  to  be  considered  for  appointment  as  the  Technical 
Member  (Petroleum  and  Natural  Gas)  of  the  Appellate  Tribunal,  constitute  a  Search  Committee 
consisting of— 

(i) Member, Planning Commission in charge of the energy sector-Chairperson; 

(ii) Secretary to the Government of India, Ministry of Petroleum and Natural Gas-Member; 

(iii) Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs-

Member; 

(iv)  Secretary  to  the  Government  of  India  in  charge  of  Commerce,  Ministry  of  Commerce  and 

Industry-Member; and 

(v)  Secretary  to  the  Government  of  India,  Department  of  Legal  Affairs,  Ministry  of  Law  and 

Justice-Member. 
5.  Term  of  office,  conditions  of  service,  etc.  of  Chairperson  and  other  members.—(1)  Before 
appointing  any  person  as  the  Chairperson  or  other  member,  the  Central  Government  shall  satisfy  itself 
that  such  person  does  not have  any  financial  or  other  interest  which is likely  to  affect prejudicially  his 
functions as Chairperson or such other member. 

(2) The Chairperson and other members shall hold office for a term of five years from the date on 

which they enter upon their offices or until they attain the age of sixty-five years, whichever is earlier: 

Provided that the Chairperson and other members shall not be eligible for re-appointment. 
Explanation.—For the purposes of this section, appointment of a member as Chairperson shall not be 

deemed to be re-appointment. 

(3)  A  person  in  the  service  of  the  Central  Government,  a  State  Government  or  an  undertaking, 
corporation or company owned or controlled by the Central Government or a State Government or from 
any other non-Governmental or corporate body shall resign or retire from such service before joining as 
the Chairperson or other member, as the case may be. 

(4)  The  salaries  and  allowances  payable  to  and  the  other  terms  and  conditions  of  service  of  the 

Chairperson and the other members shall be such as may be prescribed: 

Provided that neither the salary and allowances nor the other terms and conditions of service of the 

Chairperson or any other member shall be varied to his disadvantage after appointment. 

(5) The Chairperson or other member may resign his office by giving notice thereof in writing to the 
Central Government and on such resignation being accepted, the Chairperson or such other member shall 
be deemed to have vacated his office. 

(6) The Chairperson or any other member, upon ceasing to hold office as such, shall— 

(a) be ineligible for further employment under the Central Government or any State Government; 

and 

8 

 
 
(b) not accept any commercial employment for a period of two years from the date he ceases to 

hold such office. 

Explanation.—For  the  purposes  of  this  section,  “commercial  employment”  means  employment  in 
any  capacity  under,  or  agency  of,  a  person  engaged  in  trading,  commercial,  industrial  or  financial 
business in any field and includes also a director of a company or partner of a firm or setting up practice 
either independently or as partner of a firm or as an advisor or a consultant. 

6. Powers of Chairperson.—The Chairperson shall have the powers of general superintendence and 
directions in the conduct of the affairs of the Board and shall, in addition to presiding over the meetings of 
the Board, exercise and discharge such other powers and functions of the Board, as may be assigned to 
him by the Board. 

7.  Removal  of  Chairperson  or  any  other  member  from  office.—The  Central  Government  may 

remove from office the Chairperson or any other member, who— 

(a) has been adjudged as insolvent; or 

(b) has been convicted of an offence which, in the opinion of the Central Government, involves 

moral turpitude; or 

(c) has become physically or mentally incapable of acting as a member; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as 

a member; or 

(e)  has  so  abused  his  position  as  to  render  his  continuance  in  office  prejudicial  to  the  public 

interest: 

Provided  that  no  Chairperson  or  other  member  shall  be  removed  from  office  under  clause  (d)  or 
clause (e) unless the Central Government, after holding an inquiry by any person appointed or authority 
constituted for the purpose and in accordance with such procedure as may be prescribed in this behalf, is 
satisfied that such person ought on such ground or grounds to be removed. 

8.  Meetings  of the Board.—(1) The  Board shall  meet  at  such times  and  places,  and shall  observe 
such  procedure  in  regard  to  the  transaction  of  business  at  its  meetings  (including  the  quorum  at  such 
meetings) as may be provided by regulations. 

(2)  The  Chairperson  or,  if  he  is  unable  to  attend  a  meeting  of  the  Board,  the  senior-most  member 

present, reckoned from the date of appointment to the Board, shall preside at the meeting: 

Provided that in case of common date of appointment of members, the member senior in age shall be 

considered as senior to the other members. 

(3) All questions which come up before any meeting of the Board shall be decided by a majority of 
the  members  present  and  voting,  and  in  the  event  of  an  equality  of  votes,  the  Chairperson  or  in  his 
absence, the person presiding shall have a second or casting vote. 

(4) All orders and decisions of the Board shall be authenticated by the Secretary or any other officer 

of the Board duly authorised by the Chairperson in this behalf. 

9. Vacancies, etc., not to invalidate proceedings of the Board.—No act or proceeding of the Board 

shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Board; or 

(b) any defect in the appointment of a person acting as a member of the Board; or 

(c) any irregularity in the procedure of the Board not affecting the merits of the case. 

10. Officers and other employees of the Board.—(1) The Central Government may, in consultation 
with the Board, appoint a Secretary to exercise and perform such powers and duties, under the control of  

9 

 
 
 
the Chairperson as may be specified by regulations: 

Provided  that  no  such  consultation  shall  be  necessary  for  appointment  of  the  first  Secretary  of  the 

Board. 

(2) The Board may, with the approval of the Central Government, determine the number, nature and 
categories  of  other  officers  and  employees  required  to  assist  the  Board  in  the  efficient  discharge  of  its 
functions. 

(3)  The  salaries  and  allowances  payable  to  and  the  other  terms  and  conditions  of  service  of  the 

Secretary, the other officers and employees of the Board shall be such as may be prescribed. 

(4)  The  Board  may  appoint  consultants  required  to  assist  in  the  discharge  of  its  functions  on  such 

terms and conditions as may be determined by regulations. 

CHAPTER III 

FUNCTIONS AND POWERS OF THE BOARD 

11. Functions of the Board.—The Board shall— 

(a) protect the interest of consumers by fostering fair trade and competition amongst the entities; 

(b) register entities to— 

(i)  market  notified  petroleum  and  petroleum  products  and,  subject  to  the  contractual 

obligations of the Central Government, natural gas; 

(ii) establish and operate liquefied natural gas terminals; 

(iii)  establish  storage  facilities  for  petroleum,  petroleum  products  or  natural  gas  exceeding 

such capacity as may be specified by regulations; 

(c) authorise entities to— 

(i)   lay, build, operate or expand a common carrier or contract carrier; 

(ii) lay, build, operate or expand city or local natural gas distribution network; 

(d) declare pipelines as common carrier or contract carrier; 

(e) regulate, by regulations,— 

(i)  access  to  common  carrier  or  contract  carrier  so  as  to  ensure  fair  trade  and  competition 

amongst entities and for that purpose specify pipeline access code; 

(ii) transportation rates for common carrier or contract carrier; 

(iii)  access  to  city  or  local  natural  gas  distribution  network  so  as  to  ensure  fair  trade  and 

competition amongst entities as per pipeline access code; 
(f) in respect of notified petroleum, petroleum products and natural gas— 

(i)  ensure adequate availability; 

(ii)  ensure  display  of  information  about  the  maximum  retail  prices  fixed  by  the  entity  for 

consumers at retail outlets; 

(iii) monitor prices and take corrective measures to prevent restrictive trade practice by the 

entities; 

(iv) secure equitable distribution for petroleum and petroleum products; 

(v)  provide,  by  regulations,  and  enforce,  retail  service  obligations  for  retail  outlets  and 

marketing service obligations for entities; 

(vi) monitor transportation rates and take corrective action to prevent restrictive trade practice 

by the entities; 

(g) levy fees and other charges as determined by regulations; 

10 

 
 
(h)  maintain  a  data  bank  of  information  on  activities  relating  to  petroleum,  petroleum  products 

and natural gas; 

(i) lay down, by regulations, the technical standards and specifications including safety standards 
in activities relating to petroleum, petroleum products and natural gas, including the construction and 
operation  of  pipeline  and  infrastructure  projects  related  to  downstream  petroleum  and  natural  gas 
sector; 

(j) perform such other functions as may be entrusted to it by the Central Government to carry out 

the provisions of this Act. 

12. Powers regarding complaints and resolution of disputes by the Board.—(1) The Board shall 

have jurisdiction to— 

(a) adjudicate upon and decide any dispute or matter arising amongst entities or between an entity 
and  any  other  person  on issues  relating  to  refining,  processing,  storage,  transportation,  distribution, 
marketing and sale of petroleum, petroleum products and natural gas according to the provisions of 
Chapter V, unless the parties have agreed for arbitration; 

(b) receive any complaint from any person and conduct any inquiry and investigation connected 

with the activities relating to petroleum, petroleum products and natural gas on contravention of— 

(i) retail service obligations; 

(ii) marketing service obligations; 

(iii) display of retail price at retail outlets; 

(iv) terms and conditions subject to which a pipeline has been declared as common carrier or 
contract carrier or access for other entities was allowed to a city or local natural gas distribution 
network,  or  authorisation  has  been  granted  to  an  entity  for  laying,  building,  expanding  or 
operating a pipeline as common carrier or contract carrier or authorisation has been granted to an 
entity for laying, building, expanding or operating a city or local natural gas distribution network; 

(v) any other provision of this Act or the rules or the regulations or orders made thereunder. 

(2) While deciding a complaint under sub-section (1), the Board may pass such orders and issue such 

directions as it deems fit or refer the matter for investigation according to the provisions of Chapter V. 

13.  Procedure  of  the  Board.—(1)  The  Board  shall  have,  for  the  purposes  of  discharging  its 
functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 
1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b)  subject  to  the  provisions  of  sections  123  and  124  of  the  Indian  Evidence  Act,  1872  (1  of 
1872), requisitioning any public record or document or a copy of such record or document, from any 
office and production of such documents; 

(c) receiving evidence on affidavits; 

(d) issuing commissions for the examination of witnesses or documents; 

(e) dismissing an application for default or deciding it, ex parte; 

(f) setting aside any order of dismissal of any application for default or any order passed by it, ex 

parte; 

(g) granting interim relief; 

(h) reviewing its decision; and 

(i) any other matter which may be prescribed. 

11 

 
 
(2)  Every  proceeding  before  the  Board  shall  be  deemed  to  be  a  judicial  proceeding  within  the 
meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 
1860)  and  the  Board  shall  be  deemed  to  be  a  civil  court  for  the  purposes  of  section  195  and  Chapter 
XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

(3) The Board shall be guided by the principles of natural justice and subject to other provisions of 
this Act and of any rules made thereunder, shall have powers to regulate its own procedure including the 
places at which it shall conduct its business. 

CHAPTER IV 

REGISTRATION AND AUTHORISATION 

14. Register.—(1) For the purposes of this Act, a register to be called the Petroleum and Natural Gas 

Register shall be kept at the head office of the Board containing such details of entities— 

(a) registered for— 

(i) marketing notified petroleum, petroleum products or natural gas, or 

(ii) establishing and operating liquefied natural gas terminals, or 

(iii) establishing storage facilities for petroleum, petroleum products or natural gas  exceeding 

such capacity as may be specified by regulations, or 

(b) authorised for— 

(i) laying, building, operating or expanding a common carrier, or 

(ii) laying, building, operating or expanding a city or local natural gas distribution network, as 

may be provided by the Board by regulations. 

(2) A copy of any entry in the register purporting to be maintained by the Board and certified as such 
by an officer authorised by the Board, shall be admitted in evidence in all courts and in all proceedings 
without further proof or production of the original. 

(3) The register shall be open to public inspection at the head office of the Board. 

(4) Any person may, on application to the Board, and on payment of such fee as may be determined 

by the Board, by regulations, obtain a certified copy of any entry in the register. 

15. Registration of entities.—(1) Every entity desirous of— 

(a) marketing any notified petroleum or petroleum products or natural gas; or 

(b) establishing or operating a liquefied natural gas terminal; or 

(c) establishing storage facilities for petroleum, petroleum products or natural gas exceeding such 

capacity as may be specified by regulations, 

and fulfilling the eligibility conditions as may be prescribed shall make an application to the Board for its 
registration under this Act: 

Provided that no registration under this Act shall be required for any entity carrying on any activity 
referred to in clause (a) or clause (b) or clause (c) immediately before the appointed day but shall inform 
the Board about such activity within six months from the appointed day. 

(2) Every application for registration under sub-section (1) shall be made in such form and in such 

manner and shall be accompanied by such fee as may be determined by the Board by regulations. 

(3)  The  Board  may,  after  making  such  enquiry  and  subject  to  such  terms  and  conditions  as  it  may 
specify,  grant  a  certificate  of  registration  to  the  entity  allowing  to  commence  and  carry  on  the  activity 
referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1). 

(4) The Board may, by order, suspend or cancel a certificate of registration granted under sub-section 

(3) in such manner as may be determined by regulations: 

Provided  that  no  order  under  this  sub-section  shall  be  made  unless  the  entity  concerned  has  been 

given a reasonable opportunity of being heard. 

12 

 
 
16. Authorisation.—No entity shall— 

(a) lay, build, operate or expand any pipeline as a common carrier or contract carrier, 

(b)  lay,  build,  operate  or  expand  any  city  or  local  natural  gas  distribution  network,  without 

obtaining authorisation under this Act: 

Provided that an entity,— 

(i) laying, building, operating or expanding any pipeline as common carrier  or contract carrier; or 

(ii) laying, building, operating or expanding any city or local natural gas distribution network, 

immediately  before  the  appointed  day  shall  be  deemed  to  have  such  authorisation  subject  to  the 
provisions  of  this  Chapter,  but  any  change  in  the  purpose  or  usage  shall  require  separate  authorisation 
granted by the Board. 

17. Application for authorisation.—(1) An entity which is laying, building, operating or expanding, 
or which proposes to lay, build, operate or expand, a pipeline as a common carrier or contract carrier shall 
apply in writing to the Board for obtaining an authorisation under this Act: 

Provided that  an  entity  laying,  building,  operating  or expanding  any  pipeline  as common  carrier or 
contract carrier authorised by the Central Government at any time before the appointed day shall furnish 
the particulars of such activities to the Board within six months from the appointed day. 

(2)  An  entity  which  is  laying,  building,  operating  or  expanding,  or  which  proposes  to  lay,  build, 
operate or expand, a city or local natural gas distribution network shall apply in writing for obtaining an 
authorisation under this Act: 

Provided  that  an  entity  laying,  building,  operating  or  expanding  any  city  or  local  natural  gas 
distribution  network  authorised  by  the  Central  Government  at  any  time  before  the  appointed  day  shall 
furnish the particulars of such activities to the Board within six months from the appointed day. 

(3) Every application under sub-section (1) or sub-section (2) shall be made in such form and in such 

manner and shall be accompanied with such fee as the Board may, by regulations, specify. 

(4)  Subject  to  the  provisions  of  this  Act  and  consistent  with  the  norms  and  policy  guidelines  laid 
down by the Central Government, the Board may either reject or accept an application made to it, subject 
to such amendments or conditions, if any, as it may think fit. 

(5)    In  the  case  of  refusal  or  conditional  acceptance  of  an  application,  the  Board  shall  record  in 

writing the grounds for such rejection or conditional acceptance, as the case may be. 

18.  Publicity  of  applications.—When  an  application  for  registration  for  marketing  notified 
petroleum, petroleum products and natural gas, or for establishing and operating a liquefied natural gas 
terminal, or for establishing storage facilities for petroleum, petroleum products or natural gas exceeding 
such capacity as may be specified by regulations, is accepted whether absolutely or subject to conditions 
or limitations, the  Board shall,  as  soon as  may  be,  cause  such  acceptance to  be  known  to the  public in 
such form and manner as may be provided by regulations. 

19.  Grant  of authorisation.—(1)  When,  either on  the  basis  of  an  application  for  authorisation for 
laying,  building,  operating  or  expanding  a  common  carrier  or  contract  carrier  or  for  laying,  building, 
operating or expanding a city or local natural gas distribution network is received or on suo motu basis, 
the Board forms an opinion that it is necessary or expedient to lay, build, operate or expand a common 
carrier or contract carrier between two specified points, or to lay, build, operate or expand a city or local 
natural gas distribution network in a specified geographic area, the Board may give wide publicity of its 
intention to do so and may invite applications from interested parties to lay, build, operate or expand such 
pipelines or city or local natural gas distribution network. 

(2) The Board may select an entity in an objective and transparent manner as specified by regulations 

for such activities. 

13 

 
 
20.  Declaring,  laying,  building,  etc.,  of  common  carrier  or  contract  carrier  and  city  or  local 
natural gas distribution network.—(1) If the Board is of the opinion that it is necessary or expedient, to 
declare  an  existing  pipeline  for  transportation  of  petroleum,  petroleum  products  and  natural  gas  or  an 
existing  city  or  local  natural  gas  distribution  network,  as  a  common  carrier  or  contract  carrier  or  to 
regulate or allow access to such pipeline or network, it may give wide publicity of its intention to do so 
and  invite  objections  and  suggestions  within  a  specified  time  from  all  persons  and  entities  likely  to  be 
affected by such decision. 

(2)  For  the  purposes  of  sub-section  (1),  the  Board  shall  provide  the  entity  owning,  the  pipeline  or 
network an opportunity of being heard and fix the terms and conditions subject to which the pipeline or 
network  may  be  declared  as  a  common  carrier  or  contract  carrier  and  pass  such  orders  as  it  deems  fit 
having regard to the public interest, competitive transportation rates and right of first use. 

(3) The  Board  may,  after following  the  procedure  as specified  by  regulations  under  section 19  and 

sub-sections (1) and (2), by notification,— 

(a)  declare  a  pipeline  or  city  or  local  natural  gas  distribution  network  as  a  common  carrier  or 

contract carrier; or 

(b) authorise an entity to lay, build, operate or expand a pipeline as a common carrier or contract 

carrier; or 

(c)  allow  access  to  common  carrier  or  contract  carrier  or  city  or  local  natural  gas  distribution 

network; or 

(d)  authorise  an  entity  to  lay,  build,  operate  or  expand  a  city  or  local  natural  gas  distribution 

network. 
(4) The Board may decide on the period of exclusivity to lay, build, operate or expand a city or local 
natural  gas  distribution  network  for  such  number  of years  as  it  may  by  order, determine  in  accordance 
with the principles laid down by the regulations made by it, in a transparent manner while fully protecting 
the consumer interests. 

(5)  For  the  purposes  of  this  section,  the  Board  shall  be  guided  by  the  objectives  of  promoting 
competition  among  entities,  avoiding  infructuous  investment,  maintaining  or  increasing  supplies  or  for 
securing  equitable  distribution  or  ensuring  adequate  availability  of  petroleum,  petroleum  products  and 
natural gas throughout the country and follow such principles as the Board may, by regulations, determine 
in carrying out its functions under this section. 

21.  Right  of  first  use,  etc.—(1)  The  entity  laying,  building,  operating  or  expanding  a  pipeline  for 
transportation of petroleum and petroleum products or laying, building, operating or expanding a city or 
local  natural  gas  distribution  network  shall  have  right  of  first  use  for  its  own  requirement  and  the 
remaining  capacity  shall  be  used  amongst  entities  as  the  Board  may,  after  issuing  a  declaration  under 
section  20,  determine  having  regard  to  the  needs  of  fair  competition  in  marketing  and  availability  of 
petroleum and petroleum products throughout the country: 

Provided  that  in  case  of  an  entity  engaged  in  both  marketing  of  natural  gas  and  laying,  building, 
operating or expanding a pipeline for transportation of natural gas on common carrier or contract carrier 
basis,  the  Board  shall  require  such  entities  to  comply  with  the  affiliate  code  of  conduct  as  may  be 
specified by regulations and may require such entity to separate the activities of marketing of natural gas 
and the transportation including ownership of the pipeline within such period as may be allowed by the 
Board and only within the said period, such entity shall have right of first use. 

(2)  An  entity  other  than  an  entity  authorised  to  operate  shall  pay  transportation  rate  for  use  of 

common carrier or contract carrier to the entity operating it as an authorised entity. 

(3)  An  entity  authorised  to  lay,  build,  operate  or  expand  a  pipeline  as  common  carrier  or  contract 
carrier or to lay, build, operate or expand a city or local natural gas distribution network shall be entitled 
to institute proceedings before the Board to prevent, or to recover damages for, the infringement of any 
right relating to authorisation. 

Explanation.—For the purposes of this sub-section, “infringement of any right” means doing of any 
act  by  any  person  which  interferes  with  common  carrier  or  contract  carrier  or  causes  prejudice  to  the 
authorised entity. 

14 

 
 
22. Transportation tariff.—(1) Subject to the provisions of this Act, the Board shall lay down, by 
regulations, the transportation tariffs for common carriers or contract carriers or city or local natural gas 
distribution network and the manner of determining such tariffs. 

(2) For the purposes of sub-section (1), the Board shall be guided by the following, namely:— 

(a)  the  factors  which  may  encourage  competition,  efficiency,  economic  use  of  the    resources, 

good performance and optimum investments; 

(b) safeguard the consumer interest and at the same time recovery of cost of  transportation in a 

reasonable manner; 

(c) the principles rewarding efficiency in performance; 

(d) the connected infrastructure such as compressors, pumps, metering units, storage and the like 

connected to the common carriers or contract carriers; 

(e)  benchmarking  against  a  reference  tariff  calculated  based  on  cost  of  service,  internal  rate  of 

return, net present value or alternate mode of transport; 

(f)  policy  of the  Central  Government  applicable to  common  carrier,  contract  carrier  and  city  or 

local distribution natural gas network. 

23.  Suspension  or  cancellation  of  authorisation.—If  the  Board,  on  an  application  of  an  affected 
party or on its own motion, is satisfied that the entity in favour of which authorisation has been granted 
under  section  19  has  failed  to  comply  with  any  conditions  of  authorisation,  it  may,  after  giving  an 
opportunity to such entity of being heard, either suspend the authorisation for such period as the Board 
may think fit or cancel the authorisation: 

Provided that where the Board is of the opinion that an authorised entity persistently acts in a manner 
prejudicial  to  the  interests  of  consumers,  it  may  take  action  for  the  suspension  of  the  authorisation 
immediately subject to the opportunity of hearing being given subsequently, after which action so taken 
may be confirmed or revoked. 

CHAPTER V 

SETTLEMENT OF DISPUTES 

24.  Board  to  settle  disputes.—(1)  Save  as  otherwise  provided  for  arbitration  in  the  relevant 
agreements between entities or between an entity or any other person, as the case may be, if any dispute 
arises,  in  respect  of  matters  referred  to  in  sub-section  (2)  among  entities  or  between  an  entity  and  any 
other person, such dispute shall be decided by a Bench consisting of the Member (Legal) and one or more 
members nominated by the Chairperson: 

Provided that if the members of the Bench differ on any point or points, they shall state the point or 
points on which they differ and refer the same to a member other than a member of the Bench for hearing 
on such point or points and such point or points shall be decided according to the opinion of that member. 

(2)  The  Bench  constituted  under  sub-section  (1)  shall  exercise,  on  and  from  the  appointed  day,  all 

such jurisdiction, powers and authority as were exercisable by a civil court on any matter relating to— 

(a) refining, processing, storage, transportation and distribution of petroleum, petroleum products 

and natural gas by the entities; 

(b) marketing and sale of petroleum, petroleum products and natural gas including the quality of 

service and security of supply to the consumers by the entities; and 

(c) registration or authorisation issued by the Board under section 15 or  section 19. 

(3) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), the Board 

shall have the power to decide matters referred to in sub-section (2) on or after the appointed day. 

15 

 
 
 
25. Filing of complaints.—(1) A complaint may be filed before the Board by any person in respect 

of matters relating to entities or between entities on any matter arising out of the provisions of this Act: 

Provided  that  the  complaints  of  individual  consumers  maintainable  before  a  consumer  disputes 
redressal forum under the Consumer Protection Act, 1986 (68 of 1986) shall not be taken up by the Board 
but shall be heard and disposed of by such forum. 

Explanation.—For  the  purposes  of  this  sub-section,  the  expression  “consumer  disputes  redressal 
forum” shall mean the district forum, State Commission or, the National Commission, as the case may be, 
constituted under the provisions of the Consumer Protection Act, 1986 (68 of 1986). 

(2)  Every  complaint  made  under  sub-section  (1)  shall  be  filed  within  sixty  days  from  the  date  on 
which any act or conduct constituting a contravention took place and shall be in such form and shall be 
accompanied by such fee as may be provided by regulations: 

Provided that the Board may entertain a complaint after the expiry of the said period if it is satisfied 

that there was sufficient cause for not filing the complaint within that period. 

(3) On receipt of a complaint under sub-section (1), the Board shall decide within thirty days whether 
there is a prima facie case against the entity or entities concerned and may either conduct enquiry on its 
own  or  refer  the  matter  for  investigation  under  this  Chapter,  to  an  Investigating  Officer  having 
jurisdiction; and, where the matter is referred to such  Investigating Officer, on receipt of a report from 
such Investigating Officer, the Board may, hear and dispose of the complaint as a dispute if it falls under 
sub-section (2) of section 27 and in any other case, it may pass such orders and issue such directions as it 
deems fit. 

(4) Where the Central Government considers that a matter arising out of the provisions of this Act is 
required  to  be  investigated,  it  shall  make  a  reference  to  the  Board  and  the  provisions  of  this  Act  shall 
apply as if such reference were a complaint made to the Board. 

26. Power to investigate.—(1) For the purposes of provisions of section 25, the Board shall, subject 
to  the  provisions  of  sub-section  (3),  appoint  by  general  or  special  order,  an  officer  of  the  Board  as  an 
Investigating Officer for holding an investigation in the manner provided by regulations: 

Provided that where the Board considers it necessary that the matter should be investigated by any 
investigating  agency  of  the  State  or  Central  Government  including  the  special  police  force  constituted 
under section 2 of the Delhi Special Police Establishment Act, 1946 (25 of 1946), the Board may request 
the  concerned  Government  for  directing  or  authorising  such  agency  to  investigate  and  the  agency  so 
directed or authorised shall, then, be competent to exercise the powers and to discharge the duties of an 
Investigating Officer under this Act. 

(2) No person shall be appointed as an Investigating Officer unless he possesses such qualifications 

and experience as may be determined by the Board by regulations. 

(3)  Where  more  than  one  Investigating  Officer  is  appointed,  the  Board  shall  specify,  by  order,  the 
matters  and  the  local  limits  of  jurisdiction  with  respect  to  which  each  such  officer  shall  exercise  his 
jurisdiction. 

27.  Factors  to  be  taken  into  account  by  the  Board.—The  Board  shall,  while  deciding  a  dispute 

under this Chapter, have due regard to the provisions of this Act and to the following factors, namely:— 

(a) the amount of disproportionate gain made or unfair advantage derived, wherever quantifiable, 

as a result of the default; 

(b) the amount of loss caused to an entity as a result of the default; 

(c) the repetitive nature of the default. 

28. Civil penalty for contravention of directions given by the Board.—In case any complaint is 
filed  before  the  Board  by  any  person  or  if  the  Board  is  satisfied  that  any  person  has  contravened  a 
direction issued by the Board under this Act to provide access to, or to adhere to the transportation rate in 
respect of a common carrier, or to display maximum retail price at retail outlets, or violates the terms and 

16 

 
 
conditions subject to which registration or authorisation has been granted under section 15 or section 19 
or  the  retail  service  obligations  or  marketing  service  obligations,  or  does  not  furnish  information, 
document, return of report required by the Board, it may, after giving such person an opportunity of being 
heard in the matter, by order in writing, direct that, without prejudice to any other penalty to which he 
may be liable under this Act, such person shall pay, by way of civil penalty an amount which shall not 
exceed one crore rupees for each contravention and in case of a continuing failure with additional penalty 
which may extend to ten lakh rupees for every day during which the failure continues after contravention 
of the first such direction: 

Provided that in the case of a complaint on restrictive trade practice, the amount of civil penalty may 

extend to five times the unfair gains made by the entity or ten crore rupees, whichever is higher. 

29.  Orders  passed  by Board  deemed  to  be  decrees.—Every  order  made  by  the  Board  under this 
Act shall, on a certificate issued by an officer of the Board, shall be executable in the same manner as if it 
were a decree of a civil court: 

Provided that where an appeal lies against an order of the Board and no appeal is preferred then the 
order  of  the  Board  shall  be  deemed  to  be  a  final  decree  under  this  section  on  the  expiry  of  the  period 
allowed for preferring an appeal against such order before the Appellate Tribunal. 

CHAPTER VI 

APPEALS TO APPELLATE TRIBUNAL 

30.  Appellate  Tribunal.—(1)  Subject  to  the  provisions  of  this  Act,  the  Appellate  Tribunal 
established under section 110 of the Electricity Act, 2003 (36 of 2003) shall be the Appellate Tribunal for 
the  purposes  of  this  Act  and  the  said  Appellate  Tribunal  shall  exercise  the  jurisdiction,  powers  and 
authority conferred on it by or under this Act: 

Provided that the Technical Member of the Appellate Tribunal for the purposes of this Act shall be 
called the Technical Member (Petroleum and Natural Gas) and shall have the qualifications specified in 
sub-section (2) of section 31. 

(2)  Notwithstanding  anything  contained  in  the  Electricity  Act,  2003  (36  of  2003),  the  Central 
Government may, for the purposes of this Act, appoint one or more Technical Members (Petroleum and 
Natural  Gas)  on  the  Appellate  Tribunal  for  Electricity  or  designate  a  Technical  Member  of  the  said 
Tribunal  having  the  qualifications  specified  in  sub-section  (2)  of  section  31  and  when  a  Technical 
Member  (Petroleum  and  Natural  Gas)  is  appointed,  he  shall  be  in  addition  to  the  three  other  members 
appointed under the said Act. 

31. Technical Member (Petroleum and Natural Gas).—(1) The Technical Member (Petroleum and 
Natural Gas) shall be appointed from the panel prepared by the Search Committee constituted under sub-
section (2) of section 4. 

(2) A person shall not be qualified for appointment as a Technical Member (Petroleum and Natural 

Gas) of the Appellate Tribunal unless he— 

(i) is, or has been, a Secretary for at least one year in the Ministry or Department of the Central 
Government having adequate experience in energy sector, especially in matters relating to Petroleum 
and Natural Gas sector; or 

(ii) is, or has been, a person of ability and standing, having adequate knowledge or experience in 
dealing  with  matters  relating  to  exploration,  production,  transmission  pipelines,  marketing  or 
regulation  of  petroleum,  petroleum  products  or  natural  gas,  economics,  commerce,  law  or 
management. 

32. Terms and conditions of service of Technical Member (Petroleum and Natural Gas).—The 
term of office, the salaries and allowances payable to and the other terms and conditions of service of the 
Technical Member (Petroleum and Natural Gas) shall be the same as applicable to the other members of 
the Appellate Tribunal. 

17 

 
 
33. Appeals to Appellate Tribunal.—(1) Any person aggrieved by an order or decision made by the 

Board under this Act may prefer an appeal to the Appellate Tribunal: 

Provided that any person preferring an appeal against an order or decision of the Board levying any 

penalty shall, while filing the appeal, deposit the amount of such penalty: 

Provided  further  that  where  in  any  particular  case,  the  Appellate  Tribunal  is  of  the  opinion  that 
deposit  of  such  penalty  would cause  undue hardship to  such  person, it  may  dispense  with  such  deposit 
subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. 

(2) Every appeal under sub-section (1) shall be filed within a period of thirty days from the date on 
which a copy of the direction or order of decision made by the Board is received by the aggrieved person 
and  it  shall  be  in  such  form,  verified  in  such  manner  and  be  accompanied  by  such  fee  as  may  be 
prescribed: 

Provided  that  the  Appellate  Tribunal  may  entertain  an  appeal  after the  expiry  of  the  said  period  of 

thirty days if it is satisfied that there was sufficient cause for not filing it within that period. 

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties 

an opportunity of being heard, pass such orders thereon as it thinks fit. 

(4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and 

to the Board. 

(5)  The  appeal  filed  under  sub-section  (1)  shall  be  dealt  with  by  the  Appellate  Tribunal  as 
expeditiously as possible and endeavor shall be made by it to dispose of the appeal finally within ninety 
days from the date of receipt of appeal: 

Provided that where any such appeal could not be disposed of within the said period of ninety days, 
the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the said 
period. 

(6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness 
of any order or decision of the Board referred to in the appeal filed under sub-section (1), either on its 
own motion or otherwise, call for the records relevant to disposing of such appeal and make such orders 
as it thinks fit. 

34.  Procedure  and  powers  of  the  Appellate  Tribunal.—The  provisions  of  sections  120  to  124 
(both inclusive) of the Electricity Act, 2003 (36 of 2003) shall  mutatis mutandis apply to the Appellate 
Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions 
under the Electricity Act, 2003. 

35.  Power  of  Appellate  Tribunal  to  make  rules.—The  Appellate  Tribunal  may,  by  notification, 
make  rules  consistent  with  the  provisions  of  this  Act  as  to  the  conduct  and  procedure  in  respect  of  all 
proceedings before it under this Act. 

36. Orders passed by Appellate Tribunal to be executable as a decree.—(1) Every order made by 
the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of a civil 
court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court. 

(2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any 
order made by it to a civil court having jurisdiction and such civil court shall execute the order as if it 
were a decree made by that court. 

37.  Appeal  to  Supreme  Court.—(1)  Notwithstanding  anything  contained  in  the  Code  of  Civil 
Procedure,  1908  (5  of  1908)  or  in  any  other  law,  an  appeal  shall  lie  against  any  order,  not  being  an 
interlocutory  order,  of  the  Appellate  Tribunal  to  the  Supreme  Court  on  one  or  more  of  the  grounds 
specified in section 100 of that Code. 

(2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent 

of the parties. 

18 

 
 
(3) Every appeal under this section shall be preferred within a period of ninety days from the date of 

the decision or order appealed against: 

Provided that the Supreme Court may entertain the appeal after the expiry of the said period of ninety 
days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in 
time. 

CHAPTER VII 

FINANCE, ACCOUNTS AND AUDIT 

38. Grants by Central Government.—The Central Government may, after due appropriation made 
by Parliament by law in this behalf, make to the Board grants of such sums of money as are required to 
pay  salaries  and  allowances  payable  to  the  Chairperson  and  the  other  members  and  the  administrative 
expenses  including  the  salaries,  allowances  and  pensions  payable  to  the  officers  and  employees  of  the 
Board. 

39.  Fund.—(1)  There  shall  be  constituted  a  Fund  to  be  called  the  Petroleum  and  Natural  Gas 

Regulatory Board Fund and there shall be credited thereto— 

(i)  all grants, fees, penalties and charges received by the Board under this Act; 

(ii) all sums received by the Board from such other sources as may be approved by the Central 

Government. 

(2) The Fund shall be applied for making payments towards— 

(i)  the  salaries  and  allowances  payable  to  the  Chairperson  and  other  members  and  the 
administrative  expenses including  the  salaries,  allowances and  pensions  payable  to  the  officers  and 
employees of the Board; 

(ii) the expenses incurred or to be incurred in carrying out the provisions of this  Act. 

(3) The Central Government shall— 

(i)  constitute  a  committee  consisting  of  such  persons  as  it  thinks  fit  to  recommend  to  that 
Government the budgetary requirements of the Board for salaries, allowances and all other expenses; 
and 

(ii) fix the budgetary ceiling of the Board on the basis of the recommendations of the committee. 

40. Accounts and audit.—(1) The Board shall maintain proper accounts and other relevant records 
and  prepare  an  annual  statement  of  accounts  in  such  form  as  may  be  prescribed  by  the  Central 
Government in consultation with the Comptroller and Auditor-General of India. 

(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at 
such  intervals  as  may  be  specified  by  him  and  any  expenditure  incurred  in  connection  with  such  audit 
shall be payable by the Board to the Comptroller and Auditor-General of India. 

Explanation.—For the removal of doubts, it is hereby declared that the decisions of the Board taken 
in the discharge of its functions under this Act, being matters appealable to the Appellate Tribunal, shall 
not be subject to audit under this section. 

(3)  The  Comptroller  and  Auditor-General  of  India  or  any  other  person  appointed  by  him  in 
connection  with  the  audit  of  the  accounts  of  the  Board  shall  have  the  same  rights  and  privileges  and 
authority in connection with the audit of the Government accounts and, in particular, shall have the right 
to demand the production of books, accounts, connected vouchers and other documents and papers and 
inspection of offices of the Board. 

(4) The accounts  of  the  Board as certified by  the  Comptroller and  Auditor-General  of  India  or  any 
other  person  appointed  by  him  in  this  behalf  together  with  the  audit  report  thereon  shall  be  forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

19 

 
 
41. Annual report and its laying before Parliament.—(1) The Board shall prepare once every year 
in such form and at such time as may be prescribed, an annual report giving a summary of its activities 
including information relating to the proceedings and policies during the previous years and such report 
shall also contain statements of annual accounts of the Board. 

(2) A copy of the report shall be forwarded to the Central Government and the Central Government 
shall cause such report to be laid, as soon as may be after it is received, before each House of Parliament. 

CHAPTER VIII 

POWER OF CENTRAL GOVERNMENT 

42.  Power  of  Central  Government  to  issue  directions.—(1)  The  Central  Government  may,  from 
time to time, by writing issue to the Board such directions as it may think necessary in the interest of the 
sovereignty and integrity of India, the security of the State, friendly relations with foreign States or public 
order. 

(2) Without prejudice to the foregoing provision, the Central Government may, if it finds necessary or 
expedient  so  to  do  in  public  interest  or  for  maintaining  or  increasing  supplies  of  petroleum,  petroleum 
products  or  natural  gas  or  all  or  any  of  them  or  for  securing  their  equitable  distribution  and  ensuring 
adequate availability, issue policy directives to the Board in writing and such policy directives shall be 
binding upon the Board: 

Provided that no such directive shall relate to any day-to-day affairs of the Board: 

Provided further that the Board shall, as far as practicable, be given an opportunity of expressing its 

views before any directive is issued under this sub-section. 

(3) The decision of the Central Government whether a question is one of policy or not shall be final. 

43. Taking over control and management of facilities and business premises of any entity and 
retail  outlets  in  public  interest.—(1)  In  the  event  of  war  or  natural  calamity  or  such  other  similar 
circumstances leading to disruption of supply of petroleum, petroleum products or natural gas, the Central 
Government may, for ensuring the continuous supply of petroleum, petroleum products or natural gas, by 
notification,  either  take  over  the  control  and  management  of  any  storage  site,  facilities  and  business 
premises of any entity and retail outlets or suspend its operations or entrust, to any agency of the Central 
or State Government for such time and manage it in such manner, as may be specified in that notification: 

Provided that the affected entities shall be given an opportunity of being heard before issuing orders 

to take over the control and management of retail outlets and other business premises: 

Provided  further  that  in  case  of  any  urgency  or  in  cases  where  the  circumstances  do  not  permit 
serving  of  notice  for  want  of  sufficient  time  or  otherwise  upon  the  entity  against  whom  the  order  is 
directed,  the  opportunity  of  hearing  may  be  dispensed  with  in  public  interest  in  order  to  maintain  the 
uninterrupted supply of petroleum, petroleum products or natural gas for a specified period. 

(2) The  collector  of  the revenue  district  in  which  the  property  referred  to  in  the  notification  issued 
under sub-section (1) is situated shall determine the amount of compensation payable for taking over of 
the property. 

(3) The form and manner in which an application for claiming compensation under this section shall 
be made, the procedure for determining the compensation and the time within which such compensation 
shall be payable, shall be such as may be prescribed. 

CHAPTER IX 

OFFENCES AND PUNISHMENT 

44.  Punishment  for  contravention  of  directions  of  the  Board.—If  a  person  contravenes  the 
directions of the Board, such person shall be punishable with fine which may extend to twenty-five crore 
rupees and in case of continuing contravention with additional fine which may extend to ten lakh rupees 
for every day during which the contravention continues. 

20 

 
 
45.  Penalty  for  wilful  failure  to  comply  with  orders  of  Appellate  Tribunal.—If  any  person 
willfully fails to comply with the order of the Appellate Tribunal, he shall be punishable with fine which 
may extend to one crore rupees and in case of a second or subsequent offence with fine which may extend 
to two crore rupees and in the case of continuing contravention with additional fine which may extend to 
twenty lakh rupees for every day during which such default continues. 

46. Punishment for unauthorised activities.—If any person, being an entity, markets any notified 
petroleum,  petroleum  products  or  natural  gas  without  a  valid  registration,  or  authorisation  such  person 
shall be punishable with imprisonment which may extend to three years or with fine which may extend to 
twenty-five crore rupees or with both, and in case of continuing contravention with additional fine which 
may extend to ten lakh rupees for every day during which the contravention continues. 

47.  Punishment  for  establishing  or  operating  a  liquefied  natural  gas  terminal  without 
registration.—If a person establishes or operates a liquefied natural gas terminal without registration as 
required  under  section 15, such  person  shall  be liable  for  punishment  with  an imprisonment  for a  term 
which  may  extend  to  three  years  or  penalty  of  twenty-five  crore  rupees  or  with  both,  and  in  case  of 
continuing contravention with additional fine which may extend to ten lakh rupees for every day during 
which the contravention continues. 

48.  Punishment  for  laying,  building,  operating  or  expanding  a  common  carrier  or  contract 
carrier  without  authorisation.—If  a  person  lays,  builds,  operates  or  expands  a  common  carrier  or 
contract carrier or a city or local natural gas distribution network without obtaining authorisation required 
under section 19, such person shall be liable for punishment with an imprisonment for a term which may 
extend  to  three  years  or  penalty  of  twenty-five  crore  rupees  or  with  both,  and  in  case  of  continuing 
contravention with additional fine which may extend to ten lakh rupees for every day during which the 
contravention continues. 

49. Punishment for wilful damages to common carrier or contract carrier.—Every person who 
willfully removes, destroys or damages any pipeline or city or local natural gas distribution network or 
other  work  of  the  common  carrier  or  contract  carrier  for  supplying  petroleum,  petroleum  products  or 
natural gas shall for each such offence be punishable with imprisonment which may extend to three years 
or  with  fine  which  may  extend  to  twenty-five  crore  rupees  or  with  both,  and,  in  case  of  continuing 
contravention with additional fine which may extend to ten lakh rupees for every day during which such 
contravention continues. 

50.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment provided in this Act, if he proves that the offence was committed without his knowledge or 
that he has exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  `that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of the offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purpose of this section,— 

(a) “company” means any body corporate and includes a firm or other association of individuals; 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

21 

 
 
 
 
CHAPTER X 

MISCELLANEOUS 

51.  Maintenance  of  data bank  and  information.—(1) The  Board  shall  maintain  a  data  bank  and 
information  system  relating  to  activities  of  entities  dealing  with  petroleum,  petroleum  products  and 
natural gas in such form and manner as may be provided by regulations. 

(2) The Board shall have power to verify the data supplied by the entities and appoint any person or 

persons for the purpose and take such measures as it may consider necessary. 

52. Obligations of entities.—(1) Every entity shall— 

(a) maintain such documentary records as may be specified by the Board by regulations; 

(b) allow inspection of such facilities and documentary records, as may be specified by the Board, 

by any person authorised by the Board; 

(c) commence operation of activities for which authorisation has been granted within such period 

as may be specified by the Board in the document of authorisation; 

(d) register— 

(i) agreements with the Board relating to use of pipelines for supply of petroleum, petroleum 

products and natural gas; or 

(ii) any other document which the Board may determine by regulations; 

(e) comply with marketing service obligations and retail service obligations. 

(2)  The  Board  may  call  for  any  information  from  any  entity  including  information  which  is 

considered necessary for ensuring transparency or ascertaining true ownership of the entity. 

(3)  The  Board  or  any  officer  authorised  by  the  Board  shall  have  the  power  to  inspect  and  obtain 

information, wherever necessary, from the entities. 

(4)  For  the  effective  enforcement  of  the  terms  and  conditions  of  authorisation,  the  Board  or  any 
officer  authorised  by  it  for  that  purpose,  shall  have  all  the  powers  of  an  inspecting  officer  as  provided 
under section 209A of the Companies Act, 1956 (1 of 1956). 

(5) It shall be the duty of every entity to carry out the directions of the Board given under this section. 

(6) The Board shall maintain confidentiality in respect of any information and record received by it 
from the entities and shall not disclose information contained therein to any person or authority except on 
the grounds of public interest. 

53. Furnishing of returns, etc., to Central Government.—The Board shall furnish to the Central 
Government  at  such  time  and  in  such  form  and  manner  as  may  be  prescribed  or  as  the  Central 
Government  may  direct,  such  returns  and  statements  and  such  particulars  in  regard  to  any  matter  in 
connection with proposed or existing activities under this Act, as the Central Government may, from time 
to time, require. 

54. Chairperson, members, etc., to be public servants.—The Chairperson, Members, Officers and 
other  employees  of  the  Board  and  Technical  Member  (Petroleum  and  Natural  Gas)  of  the  Appellate 
Tribunal shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this 
Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

55. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government, Board, Technical Authority or Appellate Tribunal or any officer of 
the  Central  Government  or  any  Chairperson,  Member,  officer  or  other  employee  of  the  Board  or 
Technical Member (Petroleum and Natural Gas) of the Appellate Tribunal for anything which is in good 
faith done or intended to be done under this Act or the rules or regulations made thereunder. 

22 

 
 
 
56. Civil courts not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit 
or  proceeding  in  respect  of  any  matter  which  the  Board  or the  Appellate Tribunal  is  empowered  by  or 
under this Act to determine, and no injunction shall be granted by any court or other authority in respect 
of any action taken or to be taken in pursuance of any power conferred by or under this Act. 

57. Cognizance of certain offences.—(1) No court shall take cognizance of any offence punishable 
under Chapter IX save on a complaint made by the Board or by any investigating agency directed by the 
Central Government. 

(2) No court inferior to that of a Chief Metropolitan Magistrate or of a Chief Judicial Magistrate shall 

try any offence punishable under Chapter IX. 

(3) Every offence punishable under sections 44, 45, 46 and 47 shall be cognizable. 

58. Delegation.—The Board may, by general or special order in writing, delegate to any member or 
officer of the Board subject to such conditions, if any, as may be specified in the order, such of its powers 
and  functions  under  this  Act  (except  the  power  to  settle  a  dispute  under  Chapter  VI  and  to  make 
regulations under section 61), as it may deem necessary. 

59. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act as it may deem necessary for removing the difficulty: 

Provided that no order shall be made under this section after the expiry of two years from the date of 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

60.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules for carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the salaries and allowances payable to and the other conditions of service of the Chairperson 

and the other members under sub-section (4) of section 5; 

(b) the procedure for appointment of any person or constitution of any authority and conducting 

inquiry under section 7; 

(c)  the  salaries  and  allowances  payable  to  and  the  other  terms  and  conditions  of  service  of  the 

Secretary, officers and other employees of the Board, under sub-section (3) of section 10; 

(d) any other matter in respect of which the Board may exercise the powers of a civil court under 

clause (i) of sub-section (1) of section 13; 

(e) the eligibility conditions which an entity shall fulfill for registration under sub-section (1) of 

section 15; 

(f) the form of appeal and the manner of verifying such form, and the fee which shall accompany 

such form, under sub-section (2) of section 33; 

(g) the manner in which the accounts of the Board shall be maintained under sub-section (1) of 

section 40; 

(h)  the  time  and  manner  in  which  the  annual  report  of  the  Board  shall  be  prepared  under                  

sub-section (1) of section 41; 

(i)  the  form  and  manner  in  which  applications  for  claiming  compensation  shall  be  made,  the 
procedure for determining the compensation and the time within which such compensation shall be 
payable, under sub-section (3) of section 43; 

(j) the time and manner in which returns and statements are to be furnished by the Board to the 

Central Government under section 53; 

23 

 
 
(k) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, by rules. 

61. Power of Board to make regulations.—(1) The Board may, by notification, make regulations 

consistent with this Act and the rules made thereunder to carry out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the time and places of meetings of the Board and the procedure (including quorum necessary 

for the transaction of business) to be followed at such meetings under sub-section (1) of section 8; 

(b) the powers and duties of the Secretary under sub-section (1) of section 10; 

(c) the terms and conditions of the consultants appointed under sub-section (4) of section 10; 

(d)  the  capacity  of  storage  facilities  for  petroleum,  petroleum  products  or  natural  gas  requiring 

registration under sub-clause (iii) of clause (b) of section 11; 

(e) regulating open access to and transportation rate for the common carrier or contract carrier or 

city or local natural gas distribution network and other matters referred to in clause (e) of section 11; 

(f) marketing service obligations for entities and retail service obligations for retail outlets under 

sub-clause (v) of clause (f) of section 11; 

(g) levy of fees and other charges under clause (g) of section 11; 

(h)  the  technical  standards  and  specifications  including  safety  standards  in  activities  relating  to 

petroleum, petroleum products and natural gas under clause (i) of section 11; 

(i) the procedure to be followed by the Board including the places at which it shall conduct its 

business under sub-section (3) of section 13; 

(j)  the  manner  of  maintaining  the  Petroleum  and  Natural  Gas  Register  under  sub-section (1)  of 

section 14; 

(k) the  form  and  manner  of  making  application  for  obtaining  certified  copy  of any  entry  in the 

register and the fee which shall accompany such application, under sub-section (4) of section 14; 

(l) the form and manner in which an application under sub-section (1) of section 15 shall be made 

and the fee which shall accompany such application under sub-section (2) of section 15; 

(m) the manner by which a certificate of registration granted under sub-section (3) of section 15 

may be suspended or cancelled under sub-section (4) of section 15; 

(n)  the  form  and  manner  in  which  an  application  under  sub-section  (1)  or  sub-section  (2)  of 
section 17 shall be made and the fee which shall accompany such application under sub-section (3) of 
section 17; 

(o) the form and manner in which publicity of acceptance of applications for registration shall be 

made under section 18; 

(p) the manner of selection of an entity under sub-section (2) of section 19; 

(q)  the  principles  for  determining  the  number  of  years  for  which  a  city  or  local  natural  gas 
distribution network shall be excluded from the purview of a common carrier or contract carrier under 
sub-section (4) of section 20; 

(r)  the  guiding  principles  to  be  followed  by  the  Board  and  the  objectives  for  declaring,  or 
authorising  to  lay,  build,  operate  or  expand  a  common  carrier  or  contract  carrier  for  declaring,  or 
authorising  to  lay,  build,  operate  or  expand  a  city  or  local  natural  gas  distribution  network,  under           
sub-section (5) of section 20; 

(s) the affiliate code of conduct under which the entities are required to comply with under the 

proviso to sub-section (1) of section 21; 

24 

 
 
(t) the transportation tariffs for common carriers or contract carriers or city or local natural gas 

distribution network and the manner of determining such tariffs under sub-section (1) of section 22; 

(u)  the  form  in  which  a  complaint  may  be  made  and  the  fee  which  shall  accompany  such 

complaint, under sub-section (2) of section 25; 

(v) the  manner  of  holding  an  investigation  by  an  Investigating  Officer  under  sub-section  (1)  of 

section 26; 

(w)  the  qualifications  and  experience  which  any  person  for  appointment  as  an  Investigating 

Officer shall possess, under sub-section (2) of section 26; 

(x)  the  form  and  manner  of  maintaining  data  bank  and  information  system  by  the  Board  under 

sub-section (1) of section 51; 

(y)  maintenance  of  documentary  records  by  an  entity,  under  clause  (a)  of  sub-section  (1)  of 

section 52; 

(z) any other type of documents which are to be registered with the Board under sub-clause (ii) of 

clause (d) of sub-section (1) of section 52; 

(za) any other matter which is required to be, or may be, specified by regulations or in respect of 

which provision is to be or may be made by regulations. 

62.  Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  made  by  the  Central 
Government and every regulation made by the Board under this Act shall be laid, as soon as may be after 
it is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the rule or regulation or both Houses agree that the rule or regulation should 
not  be  made,  the rule  or  regulation  shall thereafter  have  effect only  in such  modified form  or  be  of no 
effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without 
prejudice to the validity of anything previously done under that rule or regulation. 

63. Transitional arrangements.—(1) Where, before the commencement of this Act, an agreement 
or agreements have been entered into between one oil company and another for the purpose of sharing of 
petroleum products or sharing of infrastructure facilities among the oil companies and such agreements 
have  been  approved  by  the  Central  Government,  the  Board  may  monitor  the  implementation  of  such 
agreements for the transition period. 

(2) The Board shall monitor setting up of dealerships and distributorships of motor spirit, high speed 
diesel, superior kerosene oil, liquefied petroleum gas and CNG stations for natural gas during transition 
period by the entities without encroaching on the retail network of the existing entities. 

Explanation  I.—For  the  purposes  of  this  section,  the  expression  “transition  period”  shall  mean  a 

period of three years from the date of commencement of this Act. 

Explanation  II.—For  the  purposes  of  this  section,  “infrastructure  facilities”  shall  mean  facilities  at 
ports, refineries, terminals, depots and aviation fuelling stations including hydrant lines and shall include 
loading and unloading facilities. 

Explanation III.—For the purposes of this section “encroaching” includes taking over of retail outlet 

of one entity by another. 

_____________ 

25 

 
 
